ADVANTAGES OF HONG KONG
Center for Business in Asia – Adding to the Strategic Advantages of Doing Business in Hong Kong
Hong Kong is ideally located for companies that want to do business with Mainland China and Asia. It enjoys convenient transport connections. Hong Kong is strategically located at the heart of Asia - close by to the many of the region's most exciting business markets.
Easy and efficient regional travel is the key to Hong Kong's success as a regional center.
- Beijing, Shanghai, Singapore, Taipei, Manila, Kuala Lumpur and Perth are in the same time zone as Hong Kong,
- Bangkok, Jakarta, Seoul and Tokyo are within one hour's difference,
- over 100 airlines flying to 180 locations,
- All Asian markets are less than four hours' flight away,
- Half the world's population is within five hours' flight time,
- About 1,000 daily flights between Hong Kong and the rest of the world.
The gateway to the Mainland China
Hong Kong is offering easy access – commercially and geographically – to Mainland China business opportunities. The Pearl River Delta (PRD) region is immediately to the north of Hong Kong and business people commute regularly and easily in between.
The PRD is the largest and the most productive manufacturing region in China. It is home to tens of thousands of factories owned or managed by Hong Kong and overseas companies. Resulting from its manufacturing success, the major cities of the PRD – Shenzhen, Guangzhou and Dongguan – are now among the wealthiest in China, and are the strong markets for consumer goods and business services.
From Hong Kong to Guangzhou and beyond
Smooth flow of people and cargo between Hong Kong and Mainland China are the essence to business success. Several new transport links are under construction, including the Guangzhou-Shenzhen-Hong Kong Express Rail Link.
- The rail link from Hong Kong to Guangzhou will cover 142 kimetres in 48 minutes,
- It will link into existing train services on the Mainland, connecting Hong Kong still further with other major cities in southern China and beyond,
- Wuhan will be accessible in five hours and Shanghai in eight hours - city center to city center.
Low and simple tax system
Hong Kong has a simple, predictable and low tax system. The city only imposes three direct taxes, and filing taxes is simple and easy.
Hong Kong has one of the most tax-friendly economies in the world. The city only imposes three direct taxes and has generous allowances and deductions which reduce the actual tax payable.
- Profits tax is 16.5 percent(16.5%)
- Salaries tax has a maximum of 15 percent (15%)
- Property tax is 15 percent(15%)
- No sales tax or VAT
- No withholding tax
- No capital gains tax
- No tax on dividends
- No estate tax
Hong Kong does not impose:
It is very easy to submit tax returns and this is another attractive part of Hong Kong's business environment. Many people complete their tax returns themselves – a simple process – and can submit them online, or they can rely on the many local accountancy firms - large and small, for cost-effective tax services and advice.
Free trade port
Hong Kong is well known to be a free port with easy customs procedures. Duty is paid on very few items, for example, tobacco. Recently, imports of wine and beer is duty free.
International, transparent and efficient
Hong Kong being the world's most business-friendly cities, it's free market policies, the rule of law and free flow of information mean a level playing field for all companies.
Hong Kong is Asia's most popular city for international business - its enduring appeal is built on political stability, the rule of law, free market principles, free flow of information. English as the language of business.
All businesses in Hong Kong benefit from:
- One of the world's most open, and corruption-free economies
- Independent judiciary and the rule of law
- Free flow of information
One country, two systems
Since 1997, Hong Kong has been under Chinese sovereignty but it has a separate political and legal system, based on principles that are best summed up by its 'One Country, Two Systems' concept. This has helped it to retain all the fundamental strengths that underpin its success as an international business city, while enhancing its appeal with unrivalled access to opportunities in Mainland China.
- Level playing field for all – no foreign ownership restrictions
- Clean government and rule of law upheld by an independent judiciary
- Free movement of capital, talent, goods and information
- Fully convertible Hong Kong dollar separate from the Renminbi (RMB)
- Autonomous executive and legislative powers
- Independent participation in international forums including the World Trade Organization
- English and Chinese as official languages, with English the usual language of business and contracts
The world's most corruption-free cities
Hong Kong is one of the least corrupt economies in the world. It ranks ahead of countries including Japan, the UK, the US and France. This is due to Hong Kong's strong public administration, which ensures that companies are free to pursue their business concerns on a level playing field.
Hong Kong's "Independent Commission Against Corruption (ICAC)" provides free advice to companies on how to prevent corruption. It was established in 1974 and countries around the world, including Australia, have used it as the model for corruption-fighting in their countries.
Independent legal system
Hong Kong is a popular place to structure contracts and settle disputes. Its legal system is based on the British Common Law system and it has a fully independent judiciary. The city also offers extensive mediation and arbitration services, which offer rulings that are enforceable in a number of jurisdictions.
Free flow of information
Another core advantage of Hong Kong is the freedom of information for businesses.
Constitutionally-guaranteed free press and freedom of speech
Information about government services easily available online
Unrestricted access to the internet
Hong Kong's free market policies
Hong Kong has a free market for the free trade. As a result, it is one of the most open economies in the world.
Hong Kong embraces globalization of trade and services and is an active participant in international organizations that promote such activities.
- The cornerstone of its economy rests on free enterprise, free trade and free markets open to all
- There are no barriers to trade – no tariffs, no quotas, no exceptions
- No restrictions on investments inward or outward
- No foreign exchange controls
- No nationality restrictions on corporate ownership